Grover Inc wishes to use the revaluation model for this property:

The fair value for the property is $100,000.What amount would be booked to the "accumulated depreciation" account if Grover chooses to use the elimination method to record the revaluation?
A)$20,000 credit.
B)$40,000 debit.
C)$40,000 credit.
D)$80,000 debit.

Question

Grover Inc wishes to use the revaluation model for this property:

The fair value for the property is $100,000.What amount would be booked to the "accumulated depreciation" account if Grover chooses to use the elimination method to record the revaluation?
A)$20,000 credit. 
B)$40,000 debit. 
C)$40,000 credit. 
D)$80,000 debit.

Quizplus · Accepted Answer

B)Accumulated depreciation is reset to ZERO.

Grover Inc Wishes to Use the Revaluation Model for This